Kimberly-Clark Corporation (KMB)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 12,849,000 | 12,798,000 | 12,924,000 | 13,103,000 | 13,339,000 | 13,474,000 | 13,690,000 | 13,892,000 | 13,998,000 | 14,125,000 | 14,132,000 | 13,781,000 | 13,312,000 | 13,020,000 | 12,596,000 | 12,199,000 | 12,306,000 | 12,151,000 | 12,143,000 | 12,434,000 |
| Payables | US$ in thousands | 3,715,000 | 3,643,000 | 3,613,000 | 3,531,000 | 3,653,000 | 3,490,000 | 3,713,000 | 3,788,000 | 3,813,000 | 3,660,000 | 3,701,000 | 3,846,000 | 3,840,000 | 3,519,000 | 3,337,000 | 3,152,000 | 3,336,000 | 2,995,000 | 3,032,000 | 2,876,000 |
| Payables turnover | 3.46 | 3.51 | 3.58 | 3.71 | 3.65 | 3.86 | 3.69 | 3.67 | 3.67 | 3.86 | 3.82 | 3.58 | 3.47 | 3.70 | 3.77 | 3.87 | 3.69 | 4.06 | 4.00 | 4.32 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $12,849,000K ÷ $3,715,000K
= 3.46
The payables turnover ratio measures how efficiently Kimberly-Clark Corporation is managing its accounts payable by evaluating how many times a company pays off its suppliers within a specific period.
Based on the data provided, Kimberly-Clark's payables turnover has fluctuated over the past few years. The ratio ranged between 3.46 to 4.32, with the latest reported value at 3.46 as of December 31, 2024. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which could suggest good liquidity or favorable payment terms with suppliers.
However, the decreasing trend in the payables turnover ratio over time could also indicate that Kimberly-Clark is taking longer to pay its suppliers. This might be a deliberate strategy to manage cash flow or negotiate extended payment terms with vendors.
It is essential to monitor changes in the payables turnover ratio over time to assess Kimberly-Clark's efficiency in managing its accounts payable and relationships with suppliers effectively. Further analysis, in conjunction with other financial metrics, would provide a more comprehensive understanding of the company's financial performance and operational effectiveness.
Peer comparison
Dec 31, 2024
See also:
Kimberly-Clark Corporation Payables Turnover (Quarterly Data)